Shares of Indraprastha Gas (IGL) fell as much as 9.7% on Monday, November 2, after the city gas distributor reported a sharp deterioration in its September-quarter operating performance, with EBITDA swinging to a loss and net profit declining about 89% year-on-year (YoY).
IGL reported an EBITDA loss of ₹31.7 crore for Q2 FY27, compared with EBITDA of ₹293.9 crore in the preceding quarter. Net profit attributable to equity holders of the parent fell 89.2% YoY to ₹25.9 crore from ₹240.4 crore in the year-ago quarter.
Revenue from operations, after deducting excise duty, increased 11.6% YoY to ₹5,118 crore from ₹4,587 crore. However, total expenses rose 40.1% to ₹5,794.6 crore from ₹4,135.9 crore, putting pressure on operating profitability.
Other income stood at ₹18.5 crore, while a tax write-back of ₹15 crore also supported the reported profit.
Volume growth remains steady
IGL’s total sales volumes averaged 10.06 million standard cubic metres per day (mmscmd), marginally above the CNBC-TV18 poll estimate of 10 mmscmd. Volumes increased 3% sequentially and 7% YoY, according to the figures provided.
Compressed natural gas (CNG) volumes rose 9% YoY to 696.63 million standard cubic metres, while piped natural gas (PNG) volumes increased 6% to 228.66 million standard cubic metres. Total sales volumes were reported at 925.59 million standard cubic metres for the quarter.
Despite the growth in volumes and revenue, the sharp deterioration in EBITDA highlights the pressure on operating profitability. The extent to which IGL can recover margins while sustaining volume growth will remain a key monitorable.
Shares of IGL fell up to 9.7% to an intraday low of ₹125.63 on Monday, but have since recovered some of the losses and were trading at ₹132.07 as of 10.51 am, still down over 5%. The stock has declined more than 31% since January this year and almost 39% over the last 12 months.